Definition : Also known as Income statement, is a financial statement which shows expenses and revenue of a company during a particular period, usually a fiscal quarter or year. Read : What Is Balance Sheet ?
Income Statement helps to convey the status of a company i.e. Company is making profit or suffering losses. It is very important to read Income Statement of a company before investing, both of recent and past years. Note :Revenue : Total amount received from sales of goods and services. Expenses : Total amount spend in producing final product or service. Structure of P&L Statement
Income Statement is divided into Five main section - Net sales, Cost of Goods Sold, Gross Margin, Operating Expenses and Net Profit Before & After Income Tax (Or Net Loss in case of Loss). Net Sales : It is the sum of Gross sales excluding its returns, allowances and discounts.Cost Of Goods Sold : Amount of money used to produce the final product. For example cost of inventory, merchandise purchased…

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Stock Analysis is a very important part of investing. Searching a value stock is not a easy job, it takes lots of effort and time to find a stock with good fundamentals and that can give good future gains. Analysis is used to predict future performance of a stock by properly analysing its present and historical data. We always need to aware of changes made by the companies, and also change in rules and regulations by government.

Stock analysis is very important if you are planning for long-term investment as you need to go through every fundamentals and accounting of a company including its management and future plans before investing. Every successful investor always suggest to analyse a stock both technically and fundamentally before investing, this will help you to reduce risk factor and increases greater probability of gaining good future gains. Analysis is the key of Intelligent Investor.
There are basically two types of Stock analysis - Technical analysis and Fundamental Analy…

For Stock Analysis you need to read the Balance Sheet of a company. But before reading balance sheet you need understand some basic terms related to balance sheet. Here, I will explain every term in basic language that make you understand very easily. Learn :What Is Balance Sheet ?DepreciationDefinition : It is the decline in the value of money or assets with time. Example : If you purchase a car at the price of one million. After 3 year that car will not remain with the same value. As time passes value of goods increases while of money decreases. Another example, Your grand father used to buy full bag of fruits and vegetables in just ₹100, but now days you will only get fee kilos of fruits and vegetables in ₹100. And this is what depreciation is.
Depreciation has exception. Price of Land or property(real state) which is a asset, always increases with time. Formula : Depreciation : cost - salvage value / no. of useful year Check Out :8 Steps For Quick Fundamental Analysis
Salvage Value …

Stock analysis is the detailed examination of a company or stock. It is the process of obtaining deep knowledge of business, product, accounting, market reputation, management, etc. of the company. Analysis is a very important part of investment as it gives you the idea on future value of the stock. What are plans made by the management to grow the business and what products the company is planning to launch in future will help you to understand how will the company perform in future and based on your research you will be able to take right decisions for you investments.

Learn :Difference Between Trading And Investing
There are basically two types of Stock analysis :
Technical Analysis
It is defined as the study of price movement charts of a stock. Deeply analysing the past price movement of a stock to predict its future price movement to generate profit. It is very helpful in trading (buy and hold for short-term) but too risky for Investing. Trader use technical analysis to generate…

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Definition : Also known as Income statement, is a financial statement which shows expenses and revenue of a company during a particular period, usually a fiscal quarter or year. Read : What Is Balance Sheet ?
Income Statement helps to convey the status of a company i.e. Company is making profit or suffering losses. It is very important to read Income Statement of a company before investing, both of recent and past years. Note :Revenue : Total amount received from sales of goods and services. Expenses : Total amount spend in producing final product or service. Structure of P&L Statement
Income Statement is divided into Five main section - Net sales, Cost of Goods Sold, Gross Margin, Operating Expenses and Net Profit Before & After Income Tax (Or Net Loss in case of Loss). Net Sales : It is the sum of Gross sales excluding its returns, allowances and discounts.Cost Of Goods Sold : Amount of money used to produce the final product. For example cost of inventory, merchandise purchased…

For Stock Analysis you need to read the Balance Sheet of a company. But before reading balance sheet you need understand some basic terms related to balance sheet. Here, I will explain every term in basic language that make you understand very easily. Learn :What Is Balance Sheet ?DepreciationDefinition : It is the decline in the value of money or assets with time. Example : If you purchase a car at the price of one million. After 3 year that car will not remain with the same value. As time passes value of goods increases while of money decreases. Another example, Your grand father used to buy full bag of fruits and vegetables in just ₹100, but now days you will only get fee kilos of fruits and vegetables in ₹100. And this is what depreciation is.
Depreciation has exception. Price of Land or property(real state) which is a asset, always increases with time. Formula : Depreciation : cost - salvage value / no. of useful year Check Out :8 Steps For Quick Fundamental Analysis
Salvage Value …